Sprott Inc. shareholders had better hope that a new fund is going to bring in significant new assets, or the share sale that Sprott just announced to seed the venture is going to feel awfully expensive.

Sprott is selling 7.6 million shares at $3.30 apiece to raise $25-million to seed a new hedge fund aimed at institutional investors, part of a strategy to broaden the firm’s appeal beyond retail investors by offering a product with less volatility.